Spotify is preparing for its biggest leadership change in nearly two decades as co-founder Daniel Ek announced he will step down as Chief Executive Officer (CEO) by the end of 2025.
Daniel Ek, who has led the music streaming giant since its creation in 2006, will transition into the role of Executive Chairman.
The company confirmed that Gustav Söderström, currently Chief Product and Technology Officer, and Alex Norström, Chief Business Officer, will take over as co-CEOs starting 1 January 2026.
Both have been important to Spotify’s growth over the past decade, having already shared leadership responsibilities since 2023 when they were appointed co-presidents.
Ek said in a statement: “Over the last few years, I’ve turned over a large part of the day-to-day management and strategic direction of Spotify to Alex and Gustav—who have shaped the company from our earliest days and are now more than ready to guide our next phase. This change simply matches titles to how we already operate. In my role as Executive Chairman, I will focus on the long arc of the company and keep the Board and our co-CEOs deeply connected through my engagement.”
He later added on X: “I’ve spent twenty years, nearly my entire adult life, as Spotify’s CEO. I’m ready to go from a player to a coach.”
The timing of this change reveals a period of strong performance for Spotify. Over the past year, its stock price has almost doubled, pushing its market capitalisation to around $150 billion. The platform now counts over 700 million monthly active users, including 276 million paying subscribers, while maintaining profitability for more than a year following restructuring efforts.
For Norström and Söderström, the challenge ahead is to expand beyond music into a wider audio ecosystem covering podcasts, audiobooks, and live audio, while also managing industry concerns about artificial intelligence in music production.
The company recently removed 75 million spam-like or AI-generated tracks and has begun introducing AI disclosures in music credits to improve transparency.
Board member Woody Marshall expressed confidence in the incoming leadership: “We’ve had some time watching them practice at full speed and they are ready for the game.”
Ek, meanwhile, is expected to devote more attention to his wider business ventures. He co-founded preventive health startup Neko Health, which recently raised $260 million at a $1.8 billion valuation, and runs Prima Materia, an investment firm targeting advanced technology, including artificial intelligence, biotechnology, and defence.
His backing of Helsing, a European defence technology firm, has drawn backlash from some artists, but Ek has defended the investment as necessary for Europe’s security. “When I invested in Helsing, it was something that the VC world couldn’t do or didn’t want to do. But for me, it was really important to help protect Europe,” he explained.
Daniel Ek leaves the role of Spotify CEO on a high note. The company’s global influence is unmatched, offering 100 million songs, paying out $10 billion to rights holders in 2024 alone, and bolstering an industry once crippled by piracy.
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